Payden Corporate Bond Fund (PYACX)
$9.95
NAV ($)
$0.02
NAV change ($) as of 12/6/2024
- Overview
- Portfolio Statistics
- Performance & Expenses
- Fund Commentary
Investment Strategy
The Payden Corporate Bond Fund’s strategy is to purchase investment-grade corporate bonds of companies that have leading market positions, strong cash flow generation, stable management teams and predictable earnings. The strategy’s focus is on bottom-up credit selection with an emphasis placed on adding issues with a near-term catalyst to outperform. Our credit research process looks to capitalize on opportunities in the corporate bond market across sectors and maturities; including the early identification of potential rising stars - companies that we believe will be upgraded to investment grade in the near term. A forward-looking approach is taken to credit analysis. A priority is placed on assessing a company’s future trajectory and the corresponding risk and opportunities for bondholders under various scenarios. Up to 20% of fund assets may be below investment grade.
Role In Portfolio
Appropriate as a fixed-income holding for investors seeking a dedicated corporate bond strategy.
Fund Highlights
| The fund is a well-diversified portfolio of U.S. dollar investment-grade corporate securities backed by extensive in-house credit research. | |
| It invests in credits across the full maturity spectrum and its duration and curve positioning are actively managed. | |
| The fund has the flexibility to opportunistically invest in below investment-grade securities and emerging-market debt. | |
| No loads (other fees apply). | |
| The value of an investment will generally fall when interest rates rise. |
Fund Snapshot - 11/30/2024
| Fund Inception Date | Mar 12, 2009 |
| Share Class Inception Date | Mar 12, 2009 |
| Ticker | PYACX |
| CUSIP | 704329366 |
| Fund Total Net Assets | $381.9 million |
| Benchmark | Bloomberg US Corporate Bond Index |
| Net Expense Ratio | 0.66% |
| Sales Charge | None |
| Investment Minimum | |
| Investor Class - Regular Account | $100,000 |
| Investor Class - IRA Account | $100,000 |
| Adviser Class - Regular Account | $5,000 |
| Adviser Class - IRA Account | $2,000 |
| SI Class | $10,000,000 |
| Additional Investment - All Classes | $250 |
A Low Cost leader
| Payden Corporate Bond Fund (PYACX) | Morningstar average: Corporate Bond |
|
|---|---|---|
| Net Expense Ratio | 0.66% | 0.87% |
Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.
To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Payden Funds are distributed through Payden & Rygel Distributors, member FINRA.
Please note that by your use of this website and/or sending Payden & Rygel any information via this website, you acknowledge that any personal information you provide to us will be subject to our Privacy Notice set forth in Prospectus Appendix B here.
The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.
Portfolio Characteristics - 11/30/2024
| Fund Inception Date | Mar 12, 2009 |
| Total Net Assets | $381.9 million |
| Average Duration | 6.9 years |
| Average Maturity | 13.0 years |
| 30-Day SEC Yield | 4.95% |
| 30-Day SEC Yield (unsubsidized) | 4.94% |
Duration Breakdown
| Years | Percent of Portfolio |
|---|---|
| 0-1 | 11% |
| 1-3 | 18% |
| 3-5 | 15% |
| 5-7 | 13% |
| 7-10 | 16% |
| 10+ | 27% |
| Total | 100% |
Credit Breakdown
| Credit Quality | Percent of Portfolio |
|---|---|
| AAA | 7% |
| AA | 9% |
| A | 32% |
| BBB | 42% |
| BB | 7% |
| B | 3% |
| Total | 100% |
Sector Breakdown
| Sector | Percent of Portfolio |
|---|---|
| Industrials | 39% |
| Financial Institutions | 38% |
| Utilities | 9% |
| Mortgage-Backed | 4% |
| Municipal Bonds | 3% |
| Asset-Backed | 2% |
| Other | 5% |
| Total | 100% |
Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.
To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Payden Funds are distributed through Payden & Rygel Distributors, member FINRA.
Please note that by your use of this website and/or sending Payden & Rygel any information via this website, you acknowledge that any personal information you provide to us will be subject to our Privacy Notice set forth in Prospectus Appendix B here.
The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.
| Number of funds | |||
|---|---|---|---|
 |
Overall |  |
180 |
| 3 Year | |
180 | |
| Category: Corporate Bond | 5 Year | |
161 |
| Criterion: Risk-Adjusted Return | 10 Year | |
100 |
Total Returns
| YTD | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception | |
|---|---|---|---|---|---|---|
| Quarter-end (9/30/2024) | 6.07% | 14.94% | -1.15% | 1.11% | 3.26% | 5.22% |
| Month-end (11/30/2024) | 5.08% | 9.58% | -1.55% | 0.77% | 3.02% | 5.10% |
Yearly Returns
| 2023 | 8.53% |
| 2022 | -16.33% |
| 2021 | -0.07% |
| 2020 | 8.64% |
| 2019 | 14.46% |
| 2018 | -3.05% |
| 2017 | 8.53% |
| 2016 | 6.82% |
| 2015 | 1.15% |
| 2014 | 9.14% |
Expenses
| Total Annual Operating Expense | 0.66% |
| Net or Actual Operating Expense | 0.66% |
Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.
To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Payden Funds are distributed through Payden & Rygel Distributors, member FINRA.
Please note that by your use of this website and/or sending Payden & Rygel any information via this website, you acknowledge that any personal information you provide to us will be subject to our Privacy Notice set forth in Prospectus Appendix B here.
The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.
(A) An overall rating is based on a weighted average of the fund’s ratings for the three-, five- and ten-year periods, if applicable. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating (based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a funds monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive five stars and the next 22.5% receive four stars. Highly rated funds are defined as those that have a four or five star Morningstar rating. Data provided by Morningstar, Inc. Although gathered from reliable sources, data completeness and accuracy cannot be guaranteed. Morningstar is a registered trademark of Morningstar, Inc. and is not affiliated with Payden Funds
Fund Commentary - 11/30/2024
| MARKET | |
| In November, investors continued to digest economic data reports in hopes to gain more clarity on the final rate cut decision of 2024. The Consumer Price Index matched estimates while softer-than expected GDP and consumption data increased the bets of a December rate cut. U.S. Treasury yields initially rose 0.10% to 0.15% across the curve, however, rallied into month-end with 2-year yields finishing the month 0.02% lower at 4.15% as the 10-year yield fell 0.12% to 4.17%. Corporate yields over similar-maturity U.S. Treasuries fell 0.06% to 0.78%. Thus, all-in yields on 1- to 30-year corporate bonds fell 0.11% on the month to 5.05%. | |
| November investment-grade supply finished the month with $97 billion, pushing year-to-date totals to $1.47 trillion or up 24% year-over-year. Expectations for December range from $20-$30 billion which will take 2024 full year issuance to roughly $1.5 trillion, the largest since 2020 where we saw $1.76 trillion come to market. | |
| OUTLOOK | |
| During the month, the Fund very selectively participated in the new issue calendar, primarily within the banking, communications, and utilities sectors that screened cheap. On the other side, we continued to reduce some of our exposure to the financial companies’ sector and also sold out of a securitized position that had put in a nice recovery. The Fund continues to maintain a duration close to neutral relative to its index. | |
| Following the U.S. elections, we saw a strong bid for credit that pushed corporate yields over similar-maturity U.S. Treasuries to their tightest level since the Great Financial Crisis. The Republican sweep buoyed both equity and credit markets as expectations for continued growth dominated market sentiment. That said, the concern about tariffs weighed on some sectors, such as autos, while more domestically focused industries, such as banking, outperformed. Given our constructive macroeconomic backdrop and employment picture combined with largely healthy corporate fundamentals in investment-grade credit, we believe corporate bonds could continue to perform well in the coming quarters. That said, we have noticed some greater dispersion in company results, with some able to deliver strong returns while others are having to lower profit expectations. As a result, we expect credit selection will become increasingly important going forward as the market differentiates between the top-performing and underperforming securities. | |
Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.
To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Payden Funds are distributed through Payden & Rygel Distributors, member FINRA.
Please note that by your use of this website and/or sending Payden & Rygel any information via this website, you acknowledge that any personal information you provide to us will be subject to our Privacy Notice set forth in Prospectus Appendix B here.
The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.